Industrial logistics demand hits record 76.5m sq ft in India, with Delhi-NCR leading the country’s 19% leasing surge.
In 2025, India’s industrial and logistics real estate market hit an unprecedented peak, with leasing activity jumping roughly 19 per cent to reach 76.5 million square feet across 24 key urban centres, according to findings from Savills.
Analysis by the real estate consultancy reveals that manufacturing was the primary driver, accounting for 29 per cent of the leased area. Third-party logistics providers followed closely at 28 per cent, while the e-commerce sector represented 12 per cent of the total uptake.
Savills India highlighted that the sector has sustained a powerful upward trend following the pandemic, culminating in this record-breaking annual absorption. This follows a strong performance in 2024, when leasing stood at 64.5 million square feet.
Growth was particularly concentrated in eight major tier-I hubs, including Mumbai, Delhi-NCR, Bengaluru, and Pune, where leasing rose by 20 per cent to 59.5 million square feet. Delhi-NCR secured its position as the market leader, expanding its footprint from 9.8 million square feet in 2024 to 13 million square feet in 2025.
Meanwhile, emerging tier-II and tier-III markets such as Jaipur, Lucknow, and Coimbatore experienced a 14.5 per cent increase, reaching 17 million square feet. Looking ahead, Savills India projects that the momentum will carry into 2026, with both market supply and demand expected to top 80 million square feet.
SOURCE – BUSINESS STANDARD
